Reply to Congrats private equity is coming for your local plumbers, electricians etc

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]In fairness…I know many somewhat successful small business owners who don’t really have any exit plan.  They thought their kids may take it over, but their kids saw how much work and time away from the family it took (not to mention the physical pain) and are all saying no thanks.

It’s not easy to find a buyer for these companies…their competitors aren’t exactly flush, so PE is one of the few buyers.[/quote]

Perhaps these companies should wind down into retirement and then new small businesses can open. If every small business sells out to PE, then the next generation is screwed from ever breaking into the market. This is where we need regs and tax laws that disincentivize PE taking over these businesses. [/quote]

That's easy for you to say, not owning one.  Nobody spends their life building a business, just to wind it down and close up shop...unless that is their only alternative (which is actually how like 90% of all businesses come to their end).

I know some try to sell the business to their employees, but running a several million $$$ plumbing or HVAC business is harder than maybe it seems, and their employees that are great at laying pipe or fixing clogs are terrible about running a business.

It's a big problem in many industries with baby boomer owners looking to get out of their businesses and their own children having no interest and the pool of eligible buyers is shrinking.[/quote]

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